Navy Ship Construction Contracts

T-NSIAD-88-27: Published: Apr 19, 1988. Publicly Released: Apr 19, 1988.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed the Navy's ship construction contracts to determine the extent to which those contracts: (1) experienced cost overruns; (2) resulted in claims against the government; and (3) stayed within their appropriate limits. GAO found that: (1) more contracts experienced overruns and were at or close to their ceiling prices than a year ago; (2) as of February 1988, the Navy projected cost overruns of about $2.1 billion for 21 contracts involving 60 vessels; and (3) since the Navy shared a portion of the overruns with its contractors, it was potentially liable for about $1 billion. GAO also found that: (1) the Navy is conducting a review to determine whether it has funds available to cover its potential overrun liability; (2) due to the cost overruns, contractors filed claims against the government totalling $110 million as of December 1987; and (3) the Navy settled five claims during 1987 totalling $28 million.

Sep 22, 2016

Sep 21, 2016

Sep 19, 2016

Sep 12, 2016

Sep 8, 2016

Sep 7, 2016

Sep 6, 2016

Aug 25, 2016

Looking for more? Browse all our products here